An insurance company providing workers' compensation coverage and uninsured/underinsured motorist coverage to cities (and hence, their workers) across the state pulled what many considered to be an illegal move.
As was later detailed in the case of Alabama Mutual Insurance Corp. v. City of Vernon, the city alleged in 2005 the insurer excluded city workers from collecting both workers' compensation and UM benefits in the event workers were involved in an on-the-job accident. Workers' compensation would thus be the only damages a worker could collect in the event of a serious crash. (They couldn't sue the employer, due to the exclusive remedy provision, and suing the other driver who lacked insurance would likely be fruitless.)
Vernon argued this move by the insurer was a breach of contract that effectively rendered the city's UM/UIM coverage as "illusory." The city had contracted with the insurer to provide UM/UIM benefits to injured workers. It paid for those benefits. And yet, the city didn't actually receive any coverage because the insurer cut out the only persons who had any realistic chance of collecting those benefits - city workers and volunteers.